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Jakarta Post

In search of affordable feed-in tariffs for green energy

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Jakarta   /   Mon, February 13, 2017   /  02:24 pm
In search of affordable feed-in tariffs for green energy Power supplier -- A power barge is being constructed in a shipbuilding site in Istanbul, Turkey, in August. The Indonesian government has hired several power barges from Turkey as part of its plan to supply 540 Megawatts of electricity in all regions across the country in five years. (Courtesy of Karpowership Indonesia/File)

The Energy and Mineral Resources Ministry has recently issued the latest feed-in tariff (FIT) for renewable energy (RE). As one man’s disaster is another man’s delight, the new FIT makes some people happy, while others have worries. Unlike previously when each RE’s FIT was outlined in different regulations, the latest regulation covers all FITs for all types of RE into one regulation, the Energy and Mineral Resources Minister Decree (MD) No. 12 of 2017. MD No.12/2017 sets the FIT based on business-to-business (B2B) negotiation between independent power producers (IPPs) and state-owned electricity company PLN. The government stipulates the maximum FIT reference ranges from 85 percent up to equal to the regional PLN’s production cost (BPP). Currently the Java-Madura-Bali interconnection grid has the lowest BPP of around Rp 800 (six US cents) per kWh and Papua ...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.